I move Financial Resolution No. 20:
(1) THAT, as respects chargeable gains accruing on any disposal made on or after the 6th day of April, 1992—
(a) section 3 of the Capital Gains Tax Act, 1975 (No. 20 of 1975), be amended—
(i) by the substitution of the following subsection for subsection (3):
"(3) Except as otherwise provided for by the Capital Gains Tax Acts, the rate of capital gains tax in respect of chargeable gains accruing to a person on the disposal of an asset shall be 40 per cent., and any reference in those Acts to the rate specified in this section shall be construed accordingly.",
and
(ii) by the deletion of subsection (4) (inserted by the Finance Act, 1982 (No. 14 of 1982)),
and
(b) section 36 of the Finance Act, 1982 (No. 14 of 1982), be amended by the deletion of subsections (2) and (3) and subsection (3A) (inserted by the Finance Act, 1990 (No. 10 of 1990)).
(2) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).
At present the capital gains tax rate which applies to any particular chargeable gains depends on the length of time the asset was held before disposal. The rates vary from 30 per cent for assets held for over six years to 50 per cent for assets held less than three years. The 50 per cent rate also applies to gains on development land except where their disposal is the result of a compulsory purchase order, when the charge is 40 per cent.
This resolution provides that the rate of capital gains tax on gains accruing on all disposals made on or after 6 April 1992, is to be a flat rate of 40 per cent.